Operating Supply to Customer Processes in SAP Solutions (Just-in-Time / Just-in-Sequence)

Just-in-Time (JIT) processing is a widely adopted method in manufacturing that ensures efficient, demand-driven production and logistics within supply chains. It is characterized by the timely delivery of components, minimizing inventory levels and aligning closely with production needs.

Key elements of JIT supply include forecasting and planning, where customers send forecast data for production planning, followed by specific JIT calls for short-term delivery needs.

The next-generation Just-in-Time Supply-to-Customer Solution in S/4HANA distinguishes between two types of JIT Calls:

Summarized JIT Calls (Just-in-Time - JIT-) are sent by customers to request individual components based on container sizes, referred as Kanban call-offs, or to order the delivery of components based on transport optimization, referred as Delivery Orders:

• Quantity-based or container-based request
• No vehicle reference

Sequenced JIT Calls (Just-in-Sequence - JIS-) are sent by customers to request the delivery of components or sub-assemblies for specific orders in the exact sequence of the scheduled production:

• Order-based request for supply in sequence of production
• Vehicle-specific (reference to VIN/production number)

The JIT/JIS process begins with receiving JIT calls from the customer, followed by the manufacturing process when required, such as just-in-sequence scenarios, and concludes with the shipping process  , which includes posting of the goods issue and financial settlement. This process is structured around sales scheduling agreements that define the commercial and planning aspects of the long-term supplier-customer relationship.

• Process Delivery Confirmations from Customer
• Create and Process Billing Documents
• Process Self-Billing Documents from Customer

• Create / Update Customer JIT Calls
• Process / Monitor EDI Messages
• Allocate JIT Calls to Packing Groups

• Release JIT Calls for Production and Packing
• Confirm Production and Packing
• Post Goods Movements

• Release JIT Calls for Packing
• Confirm Packing
• Create Outbound Deliveries
• Post Goods Issue

Managing customer Just-In-Sequence (JIS) calls involves several steps to ensure the process aligns with the customer's requirements:

Receiving EDI Messages and Managing JIS Calls: The process starts with receiving Electronic Data Interchange (EDI) messages from the customer. These messages contain the necessary details for the JIS call. The next step is to schedule the production and packing according to the sequence defined by the customer in the Just-In-Sequence (JIS) calls. This will ensure that the JIS calls are manufactured in the exact order required.

Production and Packing with Reference to JIS Calls: The JIS call is considered as the central business object in manufacturing to guide and coordinate shop-floor activities such as production, packing and labeling.

Shipping with Reference to JIS Calls: Once production is completed, the shipping process must also adhere to the sequence. Products are loaded and shipped in the specified order to maintain the sequence integrity upon delivery.

Settlement Process: Finally, the settlement process is carried out. This can be done either through direct invoicing or based on the self-billing messages received from the customer, depending on the agreed-upon method.

The first steps in processing customer Just-in-Sequence calls consist in receiving and monitoring EDI messages from the customer, managing the JIS calls, and scheduling the subsequent process activities. Finally, the JIS call will be handed over to production.

The next-generation Just-in-Sequence Supply-to-Customer solution in S/4HANA provides the following features and capabilities to streamline and optimize the processing of these steps:

1. JIT /JIS Supply to Customer Master Data: This feature supports process variations between different customers, as well as within different process variants for the same customer-such as variations based on the unloading-point, or the specific product being delivered. The following JIT/JIS master data can be maintained to accommodate these requirements:
   • JIT Customer Data
   • JIT Customer Supply Controls
   • JIT Packing Group Specification 
   • JIT Delivery Sequence Groups
   • JIT Teams and Responsibilities
   
2. Standard Inbound Interface "JITCALLREQUEST_IN": This interface enables receiving and processing the EDI messages for customer JIS calls. The next-generation JIT/JIS solution in S/4HANA leverages the advanced functionalities of the Application Interface Framework, providing users with a powerful tool to efficiently monitor EDI activities related to JIS calls and handle any associated errors.
3. Manage Customer JIT Calls: This capability allows users to centrally manage customer JIS calls, including editing or deleting existing JIS calls. Additionally, users can manually create new JIS calls  either by direct data entry or by copying existing calls.
4. Business Process Scheduling (BPS) for Sequence JIT Calls: This feature supports advanced scheduling of the JIS calls received from customers. Typically, customers communicate the planned requirement date and time when transmitting a JIS call. With the BPS functionalities, it is possible to calculate the date and times of the preceding activities, such as picking, packing, loading, transporting and unloading ensuring accurate scheduling for the end-to-end processing of the JIS call.
5. Demand Analysis of Customer JIT Calls: This feature allows material planners to compare customer JIS calls with the forecast schedule received from the customer to ensure accurate material planning. By analyzing these quantities, planners can detect deviations and take corrective actions to avoid overstocking or shortages. The app provides detailed analytical views with customizable deviation profiles, graphical representations, and filtering options to make informed decisions based on the customer's JIS requirements.
6. Create JIT Delivery Schedule: The requested quantities in JIS calls are generally more reliable than those provided in the forecast delivery schedule. This feature enables the generation of JIT delivery schedules directly from customer JIS calls and update the sales scheduling agreement accordingly. Depending on the MRP-relevance defined for the delivery schedule types in the sales scheduling agreement, the MRP-relevant schedule lines can be based on both forecast and JIT delivery schedules, allowing flexible and accurate demand planning. 
7. Packing Groups: This feature enables the grouping of JIS calls according to the sequence provided by the customer, ensuring that the JIS calls are processed in the correct sequence during production, packing, and shipping. The packing group is a business object that represents the planned packing of the products as requested by the customer, complying to the sequence  defined in the corresponding JIS calls and any additional customer's specific requirements.

In a typical just-in-sequence supply-to-customer process, the entire manufacturing flow, from production scheduling to the staging of the finished goods, is orchestrated by the customer JIS call. However, for products with low variation, production may be carried out independently of the customer JIS call, with only the packing and shipping processes being controlled through the JIS Calls.

The next-generation Just-in-Sequence Supply-to-Customer solution in S/4HANA provides the following features and capabilities to support shopfloor processing of JIS calls:

• Action Control

  Action control allows you to effectively manage JIT call processing within your system. It offers high flexibility, enabling users to customize various control types for different component groups according to the specific requirements. The control operates through a series of actions that are executed based on the current processing status of a component group. Once an action is performed, the system automatically updates the component group's processing status, ensuring accurate tracking.

• Process JIT Call by Scan/Data Entry

  The "Process Customer JIT Calls - By Scan/Data Entry" app streamlines essential process steps, empowering production and warehouse operators to efficiently manage their daily tasks. By offering customizable, team-specific content tailored to each specific task, the app delivers an optimized, intuitive interface that enhances productivity and minimizes errors. Key features include:

  • Device Compatibility: The app supports a range of devices, including desktops, RF-scanners, and smartphones, ensuring flexibility in different work environments.
  • Optimized Sorting: Apply sort orders for slots within packing groups to ensure guaranty  sequenced processing.
  • Configurable Scan Settings: Define verification profiles to specify which fields users should scan and the sequence they should follow to ensure correctness. Additionally, you can use sort variants to ensure the sequence of processing JIT calls.
  • Scrap Management: Easily apply scrap reason codes, ensuring accurate record-keeping and analysis.
  • Serial Number Handling: Assign and confirm serial numbers to JIT calls, enabling precise tracking of each component.
  • Nested Packing Group Processing: Efficiently manage nested packing groups.
  • Customizable Processing Variants: Define specific variants for processing components and packing groups, allowing for tailored workflows that meet the specific customer requirements.
• Reallocation of Component Groups

  The "Reallocation of Component Groups for Subsequent Delivery" functionality addresses scenarios where JIT Call component groups cannot be delivered on time due to production or stock issues. This feature allows to deallocate these component groups from their regular packing group and reassign them to a separate packing group designated for subsequent delivery. Key aspects include:

  • Flexible Reallocation: If the regular packing group is unfrozen and available, component groups can be deallocated and reassigned to a different packing group, ensuring that delayed deliveries are managed effectively without disrupting the original packing schedule.
  • Reversible Actions: The reallocation process is fully reversible. If the situation changes, component groups can be reassigned back to their original packing group, maintaining flexibility in your delivery process.
  • Emergency Correction: In cases where the packing group needs to be unfrozen to facilitate reallocation, the system provides an emergency correction feature. This allows the status of the packing group to be reversed, enabling it to be reallocated for subsequent delivery.

The Fiori app, Manage Customer JIT Calls by Component Groups, is used to create the JIS outbound delivery. 

As an alternative to creating outbound deliveries manually, you can schedule automatic creation of outbound deliveries using a background report from the Create Outbound Deliveries from Sequenced Just-In-Time Calls - Background app.

Errors in delivery creation are logged against the associated JIT call items, making it easier to evaluate errors.

It is common to use the self-billing processing for the sequenced JIT call, whenever this is the invoicing process applied, the SAP self-billing cockpit can be used to efficiently monitor and process the self-billing messages. Otherwise, the standard invoicing process using the, for example, Create Billing Document app can be used to execute the process.

The successful invoicing of the JIT delivery will update  the corresponding JIS call and set the processing status to completely invoiced and the lifecycle status of the JIS call to completed.

Managing customer Just-In-Time (JIT) calls involves several steps to ensure the process aligns with the customer's requirements:

1. Receiving EDI Messages and Managing JIT Calls: The process starts with receiving Electronic Data Interchange (EDI) messages from the customer. These messages contain the necessary details for the JIT call. This enables the material planner to efficiently schedule the availability of raw materials, ensuring the timely delivery of the products requested by the customer.
2. Create Outbound Deliveries from JIT Calls and Prepare Shipments: Summarized JIT calls serve as the central business objects that represent the customer's shipment instructions within the supplier's system. Therefore, outbound deliveries must be created from these summarized JIT in compliance with customer's specifications. Additional data included in the JIT calls may be relevant for the packaging and labeling processes.
3. Settlement Process: Finally, the settlement process is carried out. This can be done either through direct invoicing or based on the self-billing messages received from the customer, depending on the agreed-upon method.

The initial steps in processing customer Just-in-Time calls involve receiving and monitoring EDI messages from the customer, managing the JIT calls, and analyzing the JIT customer demand against the forecast. Finally, outbound deliveries are created from the JIT calls to initiate the warehouse and shipping activities.

The next-generation Just-in-Time Supply-to-Customer solution in S/4HANA provides the following features and capabilities to streamline and optimize the processing of these steps:

1. JIT /JIS Customer Master Data: This feature supports process variations between different customers, as well as within different process variants for the same customer-such as variations based on the unloading-point, or the specific product being delivered. The following JIT/JIS master data can be maintained to accommodate these requirements:
   • JIT Customer Data
   • JIT Customer Supply Controls 
   • JIT Teams and Responsibilities
   
2. Standard Inbound Interface "JITCALLREQUEST_IN": This interface enables receiving and processing the EDI messages for customer JIS calls. The next-generation JIT/JIS solution in S/4HANA leverages the advanced functionalities of the Application Interface Framework, providing users with a powerful tool to efficiently monitor EDI activities related to JIS calls and handle any associated errors.
3. Manage Customer JIT Calls: This capability allows users to centrally manage customer JIS calls, including editing or deleting existing JIT calls. Additionally, users can manually create new JIT call either by direct data entry or by copying an existing call.
4. Business Process Scheduling (BPS) for JIT Calls: This feature supports advanced scheduling of the JIT  calls received from customers. Typically, customers communicate the planned requirement date and time when transmitting a JIS call. With the BPS functionalities, it is possible to calculate the date and times of the preceding activities, such as picking, packing, loading, transporting and unloading ensuring accurate scheduling for the end-to-end processing of the JIT call.
5. Demand Analysis of Customer JIT Calls: This feature allows material planners to compare customer JIT calls with the forecast schedule received from the customer to ensure accurate material planning. By analyzing these quantities, planners can detect deviations and take corrective actions to avoid overstocking or shortages. The app provides detailed analytical views with customizable deviation profiles, graphical representations, and filtering options to make informed decisions based on the customer's JIT requirements.
6. Create JIT Delivery Schedule: The requested quantities in JIT calls are generally more reliable than those provided in the forecast delivery schedule. This feature enables the generation of JIT delivery schedules directly from customer JIT calls and update the sales scheduling agreement accordingly. Depending on the MRP-relevance defined for the delivery schedule types in the sales scheduling agreement, the MRP-relevant schedule lines can be based on both forecast and JIT delivery schedules, allowing flexible and accurate demand planning. 

Summarized JIT calls represent shipping instructions from customers. Therefore, customer specifications must be followed when creating deliveries for these calls. This feature enables the creation of outbound deliveries in line with the specified requirements. Customer-specific rules, such as splitting, partial delivery, and over or under delivery, can be configured in the JIT Supply Controls to ensure that deliveries are correctly created according to customer requirements.

The self-billing processing may sometimes be required for summarized JIT calls. When this invoicing process is applied, the SAP self-billing cockpit can be used to efficiently monitor and process the self-billing messages. Otherwise, the standard invoicing process using the for example "Create Billing Document" App can be used to execute the process.

The successful invoicing of the JIT delivery will set update the corresponding JIT call and set the processing status to completely invoiced and the lifecycle status of the JIT call to completed.